Aichi : Consolidated Financial Results for the Year Ended March 31, 2023

Note: This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results

for the Year Ended March 31, 2023

[Japanese GAAP]

April 25, 2023

Company name: AICHI CORPORATION

Stock exchange listing: Tokyo, Nagoya

Code number: 6345

URL: https://www.aichi-corp.co.jp

Representative: Toshiya Yamagishi, President and Representative Director

Contact: Tadashi Okumura, Accounting General Manager

Phone: [phone]

Scheduled date of Annual General Meeting of Shareholders: June 16, 2023

Scheduled date of commencing dividend payments: June 1, 2023

Scheduled date of filing annual securities report: June 19, 2023

Availability of supplementary briefing material on annual financial results: Yes

Schedule of annual financial results briefing session: Yes

					(Amounts of less than one millions of yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)
(1) Consolidated Operating Results		(% indicates changes from the previous corresponding period.)
	Net sales		Operating profit	Ordinary profit		Profit attributable to
			owners of parent
Fiscal year ended	Millions of yen		%	Millions of yen	%	Millions of yen		%	Millions of yen	%
March 31, 2023	60,678		7.2	7,351	7.1	8,016		3.6	5,958	5.5
March 31, 2022	56,591		(4.6)	6,861	(2.7)	7,736		0.4	5,644	(4.4)

(Note) Comprehensive income:	Fiscal year ended March 31, 2023:
	Fiscal year ended March 31, 2022:

¥	5,651 million	[	(3.2) %]
¥	5,835 million	[	(31.0) %]

	Basic earnings per	Diluted earnings per	Rate of return on	Ordinary profit to	Operating profit to
	share	share	equity	total assets ratio	net sales ratio
Fiscal year ended	Yen	Yen	%	%	%
March 31, 2023	79.16	-	7.7	8.6	12.1
March 31, 2022	74.09	-	7.6	8.5	12.1

(Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended March 31, 2023: Fiscal year ended March 31, 2022:

• 375 million
• 639 million

(2) Consolidated Financial Position

	Total assets	Net assets	Capital adequacy ratio	Net assets per share
As of	Millions of yen		Millions of yen	%	Yen
March 31, 2023	95,695		78,573	82.1	1,044.71
March 31, 2022	90,559		76,043	84.0	1,006.05
(Reference) Equity: As of	March 31, 2023:	¥	78,573 million
As of	March 31, 2022:	¥	76,043 million
(3) Consolidated Cash Flows
	Cash flows from	Cash flows from	Cash flows from	Cash and cash
	equivalents at the end
	operating activities	investing activities	financing activities
	of period
Fiscal year ended	Millions of yen	Millions of yen	Millions of yen	Millions of yen
March 31, 2023	4,508		(2,253)	(3,225)	5,727
March 31, 2022	3,989		997	(3,216)	6,676

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2. Dividends

			Annual dividends				Payout	Dividends
					Total	to net
								ratio
	1st		2nd	3rd		Year-end	Total	dividends	assets
			(consolidated)
	quarter-end	quarter-end	quarter-end			(consolidated)
Fiscal year ended		Yen	Yen	Yen		Yen	Yen	Millions of yen	%	%
March 31, 2022		-	14.00	-		20.00	34.00	2,581	45.9	3.5
March 31, 2023		-	17.00	-		19.00	36.00	2,707	45.5	3.5
Fiscal year ending
March 31, 2024		-	19.00	-		19.00	38.00		47.7
(Forecast)

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)

(% indicates changes from the previous corresponding period.)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings per
		owners of parent	share
	Millions of			Millions of		Millions of		Millions of
	yen		%	yen	%	yen	%	yen	%	Yen
Full year	61,000		0.5	7,500	2.0	8,050	0.4	6,000	0.7	79.72

* Notes:

1. Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in scope of consolidation): No
2. Changes in accounting policies, changes in accounting estimates and retrospective restatement
3. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
4. Total number of issued shares (common shares)
5. 1. Total number of issued shares at the end of the period (including treasury shares):

March 31, 2023:	75,211,400	shares
March 31, 2022:	76,395,901	shares
2) Number of treasury shares at the end of the period:
March 31, 2023:	375	shares
March 31, 2022:	809,314	shares

3) Average number of shares outstanding during the period:
Fiscal Year ended March 31, 2023:	75,268,286	shares
Fiscal Year ended March 31, 2022:	76,195,626	shares

• Financial results reports are not subjected to reviews.
• Explanation for appropriate use of financial forecasts and other special notes

The forecasts given in this document are based on the current available information in the company and certain reasonable assumptions of the company. And we don't commit to achieve these forecasting numbers. Actual results may differ from these forecasts by a variety of reasons.

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Consolidated Financial Statements

Consolidated Balance Sheets

					(Thousands of yen)
				As of March 31, 2022	As of March 31, 2023
Assets
	Current assets
	Cash and deposits		1,179,626	1,162,162
	Deposits paid	36,897,023	37,865,486
	Notes receivable - trade		2,856,931	3,408,581
	Accounts receivable - trade	15,751,309	20,063,056
	Merchandise and finished goods		896,832	1,065,423
	Work in process	1,459,508	1,251,898
	Raw materials and supplies		1,345,329	1,486,946
	Other	758,981	1,249,447
	Total current assets		61,145,543	67,553,002
	Non-current assets
	Property, plant and equipment
	Buildings and structures	19,417,152	19,505,384
		Accumulated depreciation		(12,365,792)	(12,890,269)
		Buildings and structures, net	7,051,360	6,615,115
	Machinery, equipment and vehicles		9,768,965	9,957,769
		Accumulated depreciation	(7,688,877)	(8,261,419)
		Machinery, equipment and vehicles, net		2,080,087	1,696,350
	Tools, furniture and fixtures	2,920,594	2,963,989
		Accumulated depreciation		(2,728,102)	(2,788,596)
		Tools, furniture and fixtures, net		192,491	175,392
	Land		8,524,007	8,523,400
	Leased assets	765,585	747,944
		Accumulated depreciation		(433,678)	(485,104)
		Leased assets, net	331,906	262,839
	Construction in progress		1,369	341,940
	Total property, plant and equipment		18,181,222	17,615,039
	Intangible assets		665,998	601,208
	Investments and other assets
	Investment securities		7,311,005	6,959,086
	Other	3,262,562	2,973,787
	Allowance for doubtful accounts		(6,758)	(6,653)
	Total investments and other assets	10,566,810	9,926,220
	Total non-current assets		29,414,030	28,142,468
	Total assets		90,559,574	95,695,470

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					(Thousands of yen)
				As of March 31, 2022	As of March 31, 2023
Liabilities
	Current liabilities
		Notes and accounts payable - trade		8,633,664	10,248,973
		Lease liabilities	102,516	94,148
		Income taxes payable		717,737	1,385,807
		Provision for bonuses for directors (and other	38,000	38,000
		officers)
		Provision for product warranties		228,271	153,065
		Other	2,647,420	2,975,807
		Total current liabilities		12,367,609	14,895,802
	Non-current liabilities
		Lease liabilities		295,055	214,152
		Deferred tax liabilities	704,782	695,862
		Deferred tax liabilities for land revaluation		616,302	616,302
		Retirement benefit liability	489,292	660,461
		Other		42,780	39,142
		Total non-current liabilities	2,148,213	2,225,920
	Total liabilities		14,515,822	17,121,723
Net assets
	Shareholders' equity
		Share capital	10,425,325	10,425,325
		Capital surplus		9,923,342	9,923,342
		Retained earnings	52,416,619	54,606,278
		Treasury shares		(646,937)	(313)
		Total shareholders' equity	72,118,350	74,954,632
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	4,085,430	3,882,938
		securities
		Revaluation reserve for land		(1,624,044)	(1,624,044)
		Foreign currency translation adjustment	758,735	808,182
		Remeasurements of defined benefit plans		705,280	552,038
		Total accumulated other comprehensive income	3,925,401	3,619,115
	Total net assets		76,043,752	78,573,747
Total liabilities and net assets	90,559,574	95,695,470

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Consolidated Statements of Income and Comprehensive Income

Consolidated Statements of Income

			(Thousands of yen)
		For the fiscal year	For the fiscal year
		ended March 31, 2022	ended March 31, 2023
Net sales	56,591,208	60,678,851
Cost of sales	43,980,901	47,627,170
Gross profit	12,610,306	13,051,681
Selling, general and administrative expenses
	Packing and delivery expenses	747,374	479,842
	Advertising expenses	50,689	72,348
	Sales commission	37,782	33,027
	Remuneration for directors (and other officers)	70,553	74,277
	Salaries, allowances and bonuses	2,233,670	2,182,919
	Provision for bonuses for directors (and other officers)	29,007	33,647
	Retirement benefit expenses	142,342	142,486
	Welfare expenses	481,180	506,773
	Communication and transportation expenses	214,308	251,419
	Depreciation	357,127	315,446
	Repair expenses	90,199	71,617
	Rent expenses	156,082	170,832
	Research and development expenses	419,112	478,312
	Other	719,316	887,419
	Total selling, general and administrative expenses	5,748,748	5,700,370
Operating profit	6,861,558	7,351,310
Non-operating income
	Interest income	14,525	10,724
	Dividend income	154,803	172,863
	Foreign exchange gains	18,752	56,844
	Share of profit of entities accounted for using equity	639,551	375,337
	method
	Miscellaneous income	49,171	51,487
	Total non-operating income	876,802	667,258
Non-operating expenses
	Miscellaneous losses	2,224	2,492
	Total non-operating expenses	2,224	2,492
Ordinary profit	7,736,136	8,016,076

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